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Minutes/Growth Fund Authority (JDA)
Monday, October 7, 2002 - 7:00 p.m.---___

The city council of the city of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Monday, October 7, 2002 at the hour of 7:0 p.m. with President Gershman presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim, Christensen, Kerian, Kreun, Gershman and Mayor Brown - 8.

APPROVE APPLICATION FOR FUNDING FOR
SEI INFORMATION TECHNOLOGY

The staff report from the Office of Urban Development relating to the SEI Information Technology Growth Fund application, with recommendation:
1. To hold a public hearing on the proposed funding for SEI Information Technology.
2. To approve Grand Forks Growth Fund assistance to SEI Information Technology for the following:
Direct loan in the amount of $130,000, amortized over five years at one-percent interest.
PACE participation loan of up to $130,000 at zero percent, to be repaid after the completion of the original loan.
Grant in the amount of $130,000 to assist in the acquisition of technology and installation of back-up power.

Mark Krauseneck, president and CEO Grand Forks Region Economic Development Corporation, stated he was pleased to be here representing their client, SEI Information Technology and to present the final approved application on their behalf to the JDA. He stated they have been working with this corporation since the beginning of this year and found them to be a stellar company and driven by their business interest in contrast to many companies driven by incentives and are very strong positioned to capitalize not only on their organic growth which they have been seeing throughout the last couple years in a down market but very well strategically positioned to thrive, and in such a position that they've required a third location, that they looked nationally and internationally for this third location in addition to their Merrillville, Indiana site and to their Fargo operation, and were pleased by their selection and they were influenced by many variables of the region, including strong labor market, UND and other institutions of higher education, our K through 12 system, strong infrastructure that we already have in place and they have a strong affinity for a downtown location because that's in their corporate culture already. He also stated that we were the smallest community at a city level that they seriously considered. He stated they are committed to having 150 employees within 18 months and would like to get the 300 employees as quickly as their business case allows and they consider 300 employees to be the maximum size for this particular facility. He stated in the area of incentives they have proposed and accepted and feel that the incentives are very well balanced; and that the City's financial position will be leveraged at least 10-fold given the Company's private equity, the bank's involvement and the other State programs that are involved.

President Gershman asked if there were any comments or questions. There were none.

Council Member Hamerlik moved that the recommendation be approved as put forth from the
Growth Fund; the motion was seconded by Mayor Brown. Upon voice vote the motion carried
8 votes affirmative.


Minutes-Growth Fund Authority (JDA) - October 8, 2002 - Page 2

President Gershman stated he had the opportunity to meet these people when they first came to Grand Forks and is a wonderful company; and congratulated Mr. Krauseneck and the Economic Development Corporation for the work they did and wonderful addition to our community and to downtown. Mr. Krauseneck thanked all the partners that were involved, city engineering was involved in some detail with them and their private sector partners were important, the building landlord made considerable concessions, Qwest made some concessions and Xcel also did and really a team effort on behalf of the entire community.

DECLARE SEVERAL LOTS AS SURPLUS PROPERTY
AND AUTHORIZE SALE

The staff report from the Urban Development Office relating to the sale of surplus property, with recommendation to declare the lots at 317 North 3rd Street, 209 and 211 N. 6th Street as surplus and authorize staff to advertise these properties for public sale.

Terry Hanson, Urban Development, stated that the City acquired property since 1997 through 1999, that some of the property was in the downtown commercial district and when the City acquired that property they deeded it over to the JDA, that they own approx. 7 lots in the downtown area, that they have had interest from adjacent property owners requesting that several of those properties be put up for sale and are requesting to declare as surplus two lots in the 200 block of N. 6th Street - owner of adj. apartment house is interested in that property; and one lot in the 300 block of N. 3rd Street located between Kelly's Bar and residential building and owner of the residential property is interested in purchasing that. He stated after being declared surplus they would offer them for sale to the general public and take bids, with a min. bid of 95% of the assessed value.

Moved by Kerian to declare the lots as surplus property; seconded by Council Member Kreun.

Council Member Hamerlik asked if there was a timetable set on the use of the property, that he is concerned about property owner not completing the project which does more damage to the area than a vacant lot. Mr. Hanson stated that the interested party that contacted his office on the single lot on N. 3rd Street is wanting that for additional yard space and a separation from his residence and the commercial establishment so he can put up a fence and separate the two. He stated the other two lots might be for a parking lot for apartment houses across the street and whether put time frames on those developments is maybe difficult. He stated that if owner or purchaser of these properties is not the adj. property owners, they will discuss the intent and try to work something out to try to get some assurance that development will move forward.

Upon call for the question and upon voice vote, the motion carried 8 votes affirmative.

ADJOURN

It was moved by Council Member Kreun and seconded by Council Member Kerian that we adjourn. Carried 8 votes affirmative.

Respectfully submitted,


John M. Schmisek, City Auditor